Market Reached Its Buy Target, Further Breakout To Happen With FII Buying

Indian Market Outlook: Nifty has come near its weekly target of 8294, NSE Small Cap Index has come to its one month high 5933 above which next target is 6208. FII's are not participating in the buy rally which is not triggering a buy breakout in the market. Markets may see profit booking if International Markets does not give breakout in second half of trading today.

Nifty has to give a breakout of 8294 above which next weekly target is 8614, NSE small Cap has to sustain above 5950 to set a weekly target of 6208.

Nifty Future is opening at 8203 as per SGX Nifty at 8:50 am IST, 13 points above its previous close of 8190.

FII Activity for the year 2016-17

The net FII's figure in cash market has turned negative in Dec 16’ amounting to Rs. 11325.03 Cr, after heavy Nov 16’ Selling figure, which was Rs. 19981.5 Cr.

Open Interest Index F&O and Cash Segment Activity

In Cash segment, last trading day, FII have sold shares worth Rs.500 Cr and DII bought shares worth Rs.562.27 Cr. A combined buy of Rs.61.78 Cr. For this expiry, FII and DII together are net sell worth Rs. 38.58 Cr.

In Index Options, last trading day, FII have sold 6300 contracts, below its post Demonetization average of 8577 contracts. Pro have bought 16371 contracts, below its post Demonetization average of 26619 contracts. Combined there has been a net buy of 10051 contracts, above its post Demonetization average of 31662 contracts. For the current expiry, FII and Pro combined are net sellers of 16138 contracts.

In Index Futures, last trading day, FII have sold 352 contracts, below its post Demonetization average of 3577 contracts. Pro have sold 2254 contracts, below its post Demonetization average of 4177 contracts. Combined there has been a net sell of 2606 contracts below its post Demonetization average of 5200 contracts. For the current expiry, FII and Pro combined are net buyers of 3337 contracts.

International Market Morning Update:

S&P 500 yesterday showed strength after ISM released better than expected data, purchasing managers index climbed to 54.7 in December from 53.2 in November as expectation was of 53.8.

German Index Dax is sustaining above its one year high of 11487 and yesterday closed at 11592, but was not been able to give further up move in absence of any major event.

Traders should focus on private sector employment data and Federal Reserve meeting minutes to be released today.

On the other hand crude will also remain in focus as it gave a sharp correction after giving breakout of its 18 months high of 54.51 and made new high of 55.24 to close at 52.33.

Index		Country	1D % Change
Developed Markets
America	S AND P 500 INDEX	US	0.85
	DJIA INDEX	US	0.47
Europe	DAX INDEX	Germany	0.02
	EURO STOXX 50 INDEX	Eurozone	0.58
	CAC 40 INDEX	Paris	0.55
	FTSE 100 INDEX	London	0.92
Asia	NIKKEI 225 INDEX	Japan	Closed Yesterday
	ASX 200 INDEX	Australia	1.189
Emerging Markets
America	BOVESPA INDEX	Brazil	3.73
Asia
	JAKARTA COMPOSITE INDEX	Jakarta	-0.392
	HANG SENG INDEX	China	0.68
	SET INDEX	Thailand	Closed Yesterday
	PHILIPPINE STOCK INDEX	Philippine	0.3
	KOSPI INDEX	Korea	1
	STRAITS TIMES INDEX	Singapore	0.63

Data as on 3rd January 2017. The % change is taken from previous day's close.

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Research Team - Tel: 033-30010001, write to us at clientsupport@dynamiclevels.com to give feedback. Website:www.dynamiclevels.com

1. The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision 

2. Past performance is not an indicator of future returns.